Virgin Media House sold for £19.7m

Virgin Media House, an office building on Concord Business Park in South Manchester, has been sold by its owners for £19.7m.

The 110,000sq ft building has been offloaded by Legal & General Investment Management Real Assets to Global Mutual, reflecting a net yield of 8.29%. Cushman & Wakefield acted for LGIM Real Assets on this sale.

The office building  is let to Virgin Media Ltd with approximately seven years unexpired on the lease.

The property was constructed in 1990 on a 7.83 acre site and provides over 500 car parking spaces.

Craig Westmacott, senior fund manager at LGIM Real Assets said: “The fund successfully completed both a re-gear with the occupational tenant and the  Freeholder Manchester City Council  the subsequent disposal is a completion of the Business Plan for the asset delivering strong returns to our investors.”

Craig Barton of C&W said: “The sale represents the culmination of a long C&W/L&G relationship at Virgin Media House, and despite BREXIT concerns, the sale attracted strong interest from UK and overseas investors, which allowed us to crystallise an excellent result for our client, but with further potential for Global Mutual to capitalise from continued expansion at the adjacent airport.”

Simon Marshall of C&W added: “The South Manchester office market continues to move on at pace with a dearth of quality accommodation on large floor plates providing the impetus for rental growth.  

“Virgin Media House not only offers a secure income stream to a quality tenant, but the future potential to capitalise on the ever increasing demand for quality accommodation around Manchester Airport.”

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